Consumer

Hang Seng Indexes announces changes to the Hang Seng Index, Hang Seng China Enterprises Index, Hang Seng TECH Index, HSIII Index, HSHKBIO Index and HSCI Index post market close tomorrow.
The net round-trip trade across the stocks is estimated to be HK$54.3bn (US$6.9bn) with big impact in a lot of names.
The largest inflows will be in Geely Auto if added to the HSTECH, Pop Mart if added to the HSCEI and HSI, and Horizon Robotics due to a FAF increase.

Lynch Group (LGL AU): (Another) Clean Offer From TPG

By Special Situation Investments

Lynch Group (LGL AU), an integrated wholesale floral play, has entered into a Scheme Implementation Deed with Hasfarm Holdings and Darwin Aus Bidco – both of which are TPG entities.
Hasfarm is offering A$2.245/share, a 28.3% premium to last close. The consideration includes a fully franked dividend of A$0.09/share. It’s April 2021 IPO price was A$3.60/share.
The Offer has unanimous board support. 38.5% of the register is supportive. Hasfarm has also entered into a call option for 19.9% of shares out. Done deal.

Hillhouse’s Competing Bid Challenges Smart Share Global’s Management-Led Privatization

Smart Share Global’s management consortium signed a definitive agreement to acquire the company at $1.25/ADS, later challenged by Hillhouse’s $1.77/ADS bid.
Hillhouse’s competing bid is 40% higher than management’s offer, with significant shareholder stakes potentially influencing the outcome.
EM’s business is unprofitable, with declining power bank rentals, but holds a net cash pile of $1.6/ADS.

Lynch Group (LGL AU): TPG’s Scheme Offer

By Arun George

Lynch Group Holdings (LGL AU) has entered a scheme implementation deed with TPG Inc (TPG US) at A$2.245, a 28.3% premium to the undisturbed price of A$1.75 (19 August).
Lynch has several substantial shareholders, which poses a vote risk. Encouragingly, four out of eight substantial shareholders are supportive.
The offer is attractive compared to historical trading ranges. The scheme meeting is estimated to be in November, with payment in December.

Goodai Global (Unlisted) – The Most Aggressive M&A Player in the Korean Cosmetics Industry

Goodai Global is the most aggressive M&A player in the Korean cosmetics industry. It has grown its business mainly through M&As.
It has achieved the strongest growth in sales and profits among the major Korean cosmetics companies in the past four years.
In early August 2025, Goodai Global secured 800 billion won, with a pledge to go public within three years. Goodai’s value is estimated to be about 4 trillion won.

Yum China: Focus On Innovation & Customer Engagement to Foster Solid Growth Channels Via Advanced Digital Capabilities!

Yum China Holdings, Inc. reported strong financial results for Q2 2025, marked by new record levels in revenue, operating profit, and operating margin.
The company’s dual-focused strategy emphasizing both same-store sales and system sales growth has yielded significant results.
Notably, overall same-store sales grew by 1%, driven by a 17% increase in same-store transactions at Pizza Hut and 5% system sales growth at KFC.

The Main Battlefield for Dissolution of Parent-Subsidiary Listings Will Shift to Standard Market

Standard Market is home to companies that face challenges that fail to meet tradable shares ratio, can’t grow market capitalization, or feel it burdensome to meet governance and disclosure requirements.
TSE is likely to request companies listed on the Standard Market to disclose improvement measures in response to TSE’s requests, rather than raising the listing maintenance criteria.
262 Standard Market companies are listed subsidiaries. It’s considered that the quickest way to improve the quality of the Standard Market is to delist these companies by eliminating parent-subsidiary listings.

Yum! Brands: Focusing On Growth With AI Utilization Across 30

Yum!
Brands reported its second quarter results for 2025, showcasing a mix of growth and strategic shifts amidst a challenging consumer environment.
The quarter was highlighted by system sales growth of 4%, with contributions from KFC International and Taco Bell US, which delivered positive transaction growth.

HK-Listed Apparel & Footwear Screener Aug 2025: Lever Style (1346 HK) Conference Call

By Small Cap Consumer Research

Tariff confusion has hit stocks, but the names in focus continue to be resilient as they pass on the costs, and the future impact of demand is to be determined.
The investing world is now searching for stocks that are not directly affected by Trump tariffs. Lever Style (1346 HK) is one such stock trading at 7.2x trailing PE.
With a trailing dividend yield of 6.2%, net cash of 27% of market cap, and impressive metrics on growth, this is a stock worth exploring.

GES: To Be Acquired by Authentic, Marciano Family and CEO for $16.75/GES Share

We are reiterating our projections and Buy rating and lowering our price target on GES to $16.75 (from $23.00) after the company announced an agreement with Authentic Brands, Maurice and Paul Marciano and Guess?
Chief Executive Officer Carlos Alberini to acquire Guess?
for $16.75 per GES share, a valuation for the company of $1.4 billion.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Aug 20

Daily Brief Consumer: F&F, Wilmar International, Pop Mart, Hero Motocorp, Smart Share Global, Marriott International, Gem Aromatics, Pan Pacific International Holdings, Del Monte Pacific, Koninklijke Ahold Delhaize NV and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

M&A Battle for TaylorMade
StubWorld: Wilmar Trading “Cheap” To YKA. Understandably.
Pop Mart (9992 HK): Revenue Up by 204%, Margin Up by 17 PPT, 64% Upside
NIFTY100 Low Volatility 30 Index Rebalance Preview: 2 Changes as Review Cutoff Nears
Smart Share Global: An Interesting Merger Arb Play
Marriott International: A New Game-Changing Media Network to Tap Billions in Ad Revenue & Other Key Developments!
Gem Aromatics IPO Analysis: A Niche Aroma Player
Pan Pacific International Holdings (7532 JP): FY FY06/25 flash update
Mid & Small Cap Surge: Liquidity, Inflows and Big Movers Since May
What’s News in Amsterdam – 19 August (Ahold Delhaize)

M&A Battle for TaylorMade

TaylorMade is up for sale. TaylorMade is one of the most valuable, golf equipment brands globally.
We labeled this article as Bearish due to concerns about F&F getting into this M&A battle for TaylorMade in the first place which could result in overpaying for this deal.
We would rather have F&F take the win and provide higher returns to its shareholders.

StubWorld: Wilmar Trading “Cheap” To YKA. Understandably.

Wilmar International (WIL SP) is coming up “cheap” to 90%-held Yihai Kerry Arawana Holdings C (300999 CH); yet implied stub numbers suggests otherwise.
Preceding my comments on Wilmar are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Pop Mart (9992 HK): Revenue Up by 204%, Margin Up by 17 PPT, 64% Upside

By Ming Lu

In 1H25, Pop Mart’s revenue surged by 204% YoY with all major business lines growing significantly.
We believe the operating margin will improve strongly in 2025 and rise slightly in 2026.
The P/E band suggests an upside of 64% for the end of 1H265. Buy.

NIFTY100 Low Volatility 30 Index Rebalance Preview: 2 Changes as Review Cutoff Nears

The review period for the Nifty 100 Low Volatility 30 Index ends on 29 August. The changes will be announced mid-September and implemented at the close on 29 September.
Two potential constituent changes, volatility changes and capping changes will result in one-way turnover of 10.7% resulting in a round-trip trade of INR 12.6bn (US$145m).
The forecast deletions will also have sell flows from the NIFTY Index, NSE Nifty Next 50 Index and/or the Nifty 100 Index, so the impact will add up.

Smart Share Global: An Interesting Merger Arb Play

By Nicholas Tan

Smart Share Global (EM US) , previously known as “Energy Monster”, is a rather interesting merger arbitrage situation.
It provides a unique risk/reward balance analogous to the famous adage, “heads I win, tails I don’t lose too much”.
In this note, we examine the company and the merger dynamics.

Marriott International: A New Game-Changing Media Network to Tap Billions in Ad Revenue & Other Key Developments!

Marriott International, Inc. reported its second-quarter 2025 financial results, revealing both positives and areas of concern.
The company showed resilience amid global macroeconomic uncertainty by delivering strong performance metrics that surpassed previous earnings guidance.
The company’s global RevPAR (revenue per available room) increased by 1.5%, with particular strength observed in regions like APAC (Asia-Pacific) and EMEA (Europe, Middle East, and Africa), demonstrating a 9% and 7% rise, respectively.

Gem Aromatics IPO Analysis: A Niche Aroma Player

By Sudarshan Bhandari

Gem Aromatics, a specialty ingredients manufacturer, opened its INR 450 crore IPO (Aug 19–21) at a INR 309–INR 325 price band.
The company supplies sticky, specification-heavy ingredients (mint derivatives, aroma chemicals) to marquee FMCG and F&F players—segments benefiting from “China+1” and premiumisation in India.
Quality of customers and process capabilities are positives, but concentration, raw-material cycles and a pending land litigation temper enthusiasm, execution on citral scale-up is key.

Pan Pacific International Holdings (7532 JP): FY FY06/25 flash update

In FY06/25, sales increased 7.2% YoY, operating profit grew 15.8% YoY, driven by effective business initiatives.
Discount Store business achieved non-consolidated operating profit over JPY100.0bn, OPM improved to 7.2%, strong duty-free sales.
Company plans to open 25 new stores in Japan, seven overseas, targeting JPY190.0bn duty-free sales annually.

Mid & Small Cap Surge: Liquidity, Inflows and Big Movers Since May

By Geoff Howie

Oxley Holdings’ ADT surged to S$0.583 million since May, a 10.6× increase, with S$5.3 million profit before tax in 1HFY25.
UOB-Kay Hian Holdings recorded S$23.09 million net institutional inflow, with P/E ratio rising from 7x to 10x.
Non-index mid and small cap stocks attracted over S$100 million net institutional inflows since May, led by UOBKH and CSE Global.

What’s News in Amsterdam – 19 August (Ahold Delhaize)

By The IDEA!

Yesterday, Ahold Delhaize announced to have reached an agreement for the divestment of 87 Romanian stores with local Romanian supermarket company Annabella, which has over 30 years of history of operating in the Romanian market.
This divestment is in accordance with Ahold Delhaize’s post-closing obligations from the Romanian Competition Council (RCC), as announced on 3 January 2025 following the acquisition of Profi.
Of the 87 stores to be divested, 82 are currently operated by Profi, with the remaining five operated by Mega Image, Ahold Delhaize’s other supermarket brand in the Romanian market.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Aug 19

Daily Brief Consumer: Smart Share Global, Pop Mart, Guzman Y Gomez, Geely Auto, Mercari , Bluestone Jewellery and Lifestyle Ltd (BJL), Aurora World, MFE-Media for Europe NV and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Smart Share Global (EM US): Hillhouse Crashes The Party. And Rightfully So
Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for Sep25
Quiddity Leaderboard HSCEI Sep25: One Index Change Possible; ~US$180mn One-Way; Announcement Soon
Guzman IPO Lockup – Last of the Lockups for a US$750m+ Release
Quiddity Leaderboard HSTECH Sep25: GEELY up 15% Vs Peers; ~US$2.2bn One-Way; Announcement Soon
Mercari (4385 JP): Japan’s Leading C2C Trading App at 14x P/E with Margin Uplift Potential
Bluestone Jewellery IPO Trading – Tepid Demand
Aurora World – Palm Pals and YooHoo or Chairman’s Love of Golf?
Liquid Universe of European Ordinary and Preferred Shares: August ’25 Report
Pop Mart (9992 HK) – Core Reasons for High Growth and Performance Forecast

Smart Share Global (EM US): Hillhouse Crashes The Party. And Rightfully So

Nearly seven months after receiving a preliminary non-binding proposal, Smart Share Global (EM US) announced on the 1st August a firm Offer had been entered into.
The Offeror consortium, led by Mars Guangyuan Cai, Chairman and CEO, made an Offer of US$1.25/ADS, a 74.8% premium to last close; but ~20% below net cash + short-term investments.
Now Hillhouse has thrown its hat into the ring with a US$1.77/ADS NBIO. Smart Share’s special committee of independent directors should engage.

Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for Sep25

Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 5 September.
We highlight 6 stocks that have a higher probability of being added to the index. With the index committee entitled to a lot of discretion, there will be differences.
CATL completes 3 months of listing just prior to the review meeting date and is a dark horse candidate, though the committee could let the stock season for another quarter.

Quiddity Leaderboard HSCEI Sep25: One Index Change Possible; ~US$180mn One-Way; Announcement Soon

The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
The official index changes and indicative weights for the September 2025 index rebal event will be publicly announced after the close on Friday 22nd August 2025.
We continue to expect Pop Mart (9992 HK) to be an ADD and J&T Global Express (1519 HK) to be a DEL in HSCEI in September 2025.

Guzman IPO Lockup – Last of the Lockups for a US$750m+ Release

Guzman Y Gomez (GYG AU) raised around US$221m in its Australian IPO. Its final IPO linked lockup expiry is due soon.
GYG is a quick service restaurant business with more than 200 restaurants globally. It mainly focuses on fresh, made-to-order, Mexican-inspired food.
In this note, we will talk about the lockup dynamics and possible placement.

Quiddity Leaderboard HSTECH Sep25: GEELY up 15% Vs Peers; ~US$2.2bn One-Way; Announcement Soon

The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
The official index changes and indicative weights for the September 2025 index rebal event will be announced after the close on Friday 22nd August 2025.
We continue to expect one low-conviction index change for September 2025 and we estimate there to be capping flows of ~US$2.2bn one-way.

Mercari (4385 JP): Japan’s Leading C2C Trading App at 14x P/E with Margin Uplift Potential

By Michael Fritzell

I’m fascinated by the market for second-hand goods.
eBay has existed for many decades, but it was only with the smartphone that the market took off.
With a smartphone, you could snap a photo of your item and post it online within minutes.

Bluestone Jewellery IPO Trading – Tepid Demand

Bluestone Jewellery and Lifestyle Ltd (BJL) raised around US$176m in its India IPO.
BJL offers contemporary lifestyle diamond, gold, platinum, and studded jewellery under its flagship brand. It is a digital-first direct-to-consumer (DTC) brand.
We have looked at the past performance and valuations in our previous note. In this note, we talk about the trading dynamics.

Aurora World – Palm Pals and YooHoo or Chairman’s Love of Golf?

Aurora World reported excellent results in 2Q 2025. It had sales of 77.1 billion won (up 26.5% YoY) and operating profit of 8.8 billion won (up 86.7% YoY).
The company’s excellent results in 2Q 2025 was driven by the continued strong demand for its character toys (Palm Pals, YooHoo & Friends, and Rolly Pets) in key overseas markets.
If we attach a 10x P/E on estimated net profit of 30.1 billion won, it would suggest a market cap of 301 billion won (2026E) (37% upside from current levels).

Liquid Universe of European Ordinary and Preferred Shares: August ’25 Report

By Jesus Rodriguez Aguilar

MFE: A versus B discount widened to 32.2%. ProSiebenSat.1 tender issues new A shares, lifting A voting share from 12.64% toward ~19% at full take-up, supporting medium-term convergence.
Handelsbanken: B shares trade at a 62% premium despite far lower votes (ratio 55.17) and liquidity; history suggests mean reversion—bias long A / short B.
Telecom Italia: savings premium 11.4%. Three years of unpaid €0.0275 dividends (€0.0825 arrears). Payouts guided from 2026; Poste Italiane now largest shareholder, reinforcing governance stability.

Pop Mart (9992 HK) – Core Reasons for High Growth and Performance Forecast

By Xinyao (Criss) Wang

In bleak consumption environment, Pop Mart is definitely an “outsider”.Explanations such as “lipstick effect” are more like a self-consistent logic, which may have some sense, but doesn’t constitute core contradiction.
To truly understand the investment value of Pop Mart, it’s necessary to assess future growth potential.We think overseas revenue could reach RMB16-17 billion in 2025 and RMB42 billion in 2026.
Net profit CAGR in 2024-2026 could be about 79.5%. Pop Mart would still maintain high growth in short-term. But after 2026, there are uncertainties of channel policies and IP-driven factors.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Aug 18

Daily Brief Consumer: Sanrio, Smart Share Global, Alibaba, TSE Tokyo Price Index TOPIX and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Nikkei 225 Index Rebalance Sep25: Performance of Potential Adds/Deletes & Positioning
Smart Share Global (EM US): Hillhouse Emerges with a Competing Offer
ECM Weekly (18 August 2025)- Eve Energy, CNGR, Will Semi, 52 Toys, JSW, Bluestone, Tuas, Hexaware
How Effective Will the Changes in Listing Criteria Be, Amid a Long Grace Period and Secured Listing?

Nikkei 225 Index Rebalance Sep25: Performance of Potential Adds/Deletes & Positioning

The changes to the Nikkei 225 (NKY INDEX) as part of the September rebalance should be announced in just over 2 weeks. We expect 2 changes at the review.
BayCurrent Consulting‘s PAF will double, Fast Retailing‘s CPAF will stay the same, and Sony Financial Group will be deleted from the index following its spinoff from Sony Corp (6758 JP).
Sanrio (8136 JP)‘s improved liquidity increases the probability of index inclusion, and the stock could be added to the index at the next rebalance if it misses in September.

Smart Share Global (EM US): Hillhouse Emerges with a Competing Offer

By Arun George

Smart Share Global (EM US) has disclosed a competing non-binding offer from Hillhouse at US$1.77 per ADS, a 41.6% premium to the Trustar offer.
The Hillhouse proposal meets the criteria for a superior proposal. The support agreement enables management rollover shareholders to switch allegiance from Trustar to Hillhouse.
Unlike the Trustar offer, the Hillhouse offer is above the last reported net cash (US$1.62 per ADS). The high premium suggests a low probability that Trustar bumps.

ECM Weekly (18 August 2025)- Eve Energy, CNGR, Will Semi, 52 Toys, JSW, Bluestone, Tuas, Hexaware

Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, a number of companies are lining up to start 2H listing season, which is likely to be one of the busiest over the past few years.
On the placements front as well, given ongoing earnings annoucement there were only one large placement last week.

How Effective Will the Changes in Listing Criteria Be, Amid a Long Grace Period and Secured Listing?

Companies with market capitalization of under 10 billion yen will be given long grace period. Considering inflation and long grace period, this seems not such a difficult hurdle to overcome.
If it becomes easy to meet the new standards, the growth market may not change much from the current situation, where many companies with limited growth potential remain.
Even though there’re measures to enable companies to move to standard market if things don’t work out, it’s questionable how many companies will seriously pursue measures to increase market capitalization.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Aug 17

Daily Brief Consumer: Guangzhou Automobile Group, Sun Corp, Samsonite, TSE Tokyo Price Index TOPIX, Sinclair Broadcast Group A, MercadoLibre , Ingredion Inc, Magna International , Church & Dwight Co and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

A/H Premium Tracker (To 15 Aug 2025): BIG Beautiful Skew Rampages Onward
Last Week In Event SPACE: Sun Corp/Cellebrite, Swire, Shandong Hi-Speed, PRC Rural Bank Delistings
Strategic Developments: LWAY’s Strong Q2, RTAC’s Decline, WOW Buyout, and Samsonite’s Dual Listing Plans
Revision of Corporate Governance Code Will Support Dialogue Between Overseas Investors and Companies
Sinclair’s Strategic Review Sends M&A Signals—Is A Mega Deal Coming?
MercadoLibre Inc.: E-commerce Expansion & Free Shipping Strategy to Enhance Overall Value Proposition!
Ingredion Incorporated: Geographic Market Strategy in LATAM to Further Enforce Their Competitive Edge!
Magna International: Initiation Of Coverage- Strengthening Its Competitive Edge With Localization & Technological Flexibility!
Church & Dwight: International Expansion & Market Penetration to Enhance Revenue Streams Outside of the U.S.!

A/H Premium Tracker (To 15 Aug 2025): BIG Beautiful Skew Rampages Onward

HUGE, rampaging, “Beautiful Skew” continues. Enormous swings in H/A ratios in high AH premia names, materials, and non-bank finance.
Last week’s short reco on China Merchants Bank H (3968 HK) fell 2.9% on the week, 2.2% from Monday close to Friday. AH premium fell a tick.
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Pairs Monitor are both there free for SK readers.

Last Week In Event SPACE: Sun Corp/Cellebrite, Swire, Shandong Hi-Speed, PRC Rural Bank Delistings

By Special Situation Investments

Sun Corp (6736 JP) is a clear value play. But it’s not as cheap to Cellebrite (CLBT US) as it was last month. The trade is a net long position
As Swire Pacific (A) (19 HK) plumbs new 12-month lows for its NAV discount and implied stub, Swire’s B shares have significantly outperformed the As over the past month.
Shandong Hi-Speed (412 HK) is a bubble. High shareholder concentration is still likely present, and the stock is getting squeezed. SHP is a short. Once it starts to turn.

Strategic Developments: LWAY’s Strong Q2, RTAC’s Decline, WOW Buyout, and Samsonite’s Dual Listing Plans

Lifeway Foods’ Q2 results show 10% sales growth and 18% volume increase, enhancing leverage in Danone negotiations.
Renatus Tactical Acquisition’s stock declined by 6% amid speculation on crypto treasury strategy, maintaining attractive risk-reward profile.
WideOpenWest buyout concluded at $5.2/share, offering 65% premium to recent levels, despite undervaluation concerns.

Revision of Corporate Governance Code Will Support Dialogue Between Overseas Investors and Companies

At June AGMs held by over 1,700 companies, out of 114 companies that received shareholder proposals, 7 were approved. The fact is that proposals aren’t approved without high foreign ownerships.
At the end of March 2024, institutional investors’ shareholding surpassed the combined shareholding of corporate and financial institutions. Companies are expected to listen to the opinions of their shareholders.
Although technical guidance from FSA and TSE is unlikely to directly lead to management improvements, it’s expected to serve as a basis for supporting dialogue between overseas investors and companies.

Sinclair’s Strategic Review Sends M&A Signals—Is A Mega Deal Coming?

Sinclair Broadcast Group recently released its financial results for the second quarter of 2025, reporting a challenging quarter amid macroeconomic uncertainties, though they still managed to deliver results close to their target ranges.
The company showed resilience through its extensive media and technology platform, with advertising revenue within expectations, and a year-over-year rise in core advertising revenue.
However, expectations were tempered with distribution revenues not meeting projections due to slower subscriber growth in larger virtual MVPDs. Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

MercadoLibre Inc.: E-commerce Expansion & Free Shipping Strategy to Enhance Overall Value Proposition!

MercadoLibre reported solid performance for the second quarter of 2025, marked by a substantial revenue increase of over 30% year-on-year and record income from operations of $825 million.
The company’s strategy to lower the free shipping threshold in Brazil for the third time in five years reflects its goal of increasing online retail by minimizing transaction barriers.
This initiative reportedly attracted new users and enhanced engagement with existing ones, positively impacting gross merchandise value (GMV) growth, especially in June.

Ingredion Incorporated: Geographic Market Strategy in LATAM to Further Enforce Their Competitive Edge!

Ingredion Incorporated reported its second-quarter results for 2025, showcasing mixed financial performance with both positive and negative aspects influencing its strategic outlook.
The company achieved a historic milestone with an adjusted operating income of $273 million, marking its highest ever for a second quarter, bolstered by a 1% increase from the previous year and a 12% increase during the first half of 2025.
However, net sales declined by 2% due to the pass-through of lower corn costs, highlighting some challenges in its operational efficiency and pricing strategy.

Magna International: Initiation Of Coverage- Strengthening Its Competitive Edge With Localization & Technological Flexibility!

Magna International’s second quarter of 2025 results showcase a mixed performance across various financial metrics, amid ongoing industry challenges such as lower vehicle production in key markets and tariff impacts.
The company managed to achieve a 1% increase in adjusted earnings before interest and taxes (EBIT) and a 20- basis-point improvement in EBIT margin, although sales decreased by 3% year-over-year to $10.6 billion.
This contraction in sales was mainly attributed to weaker production dynamics in North America and Europe, declines in complete vehicle assembly volumes, and other operational adjustments.

Church & Dwight: International Expansion & Market Penetration to Enhance Revenue Streams Outside of the U.S.!

The recent earnings report for Church & Dwight reveals a mixed performance in the second quarter of 2025, characterized by modest growth and strategic management actions.
Organic sales registered a slight increase of 0.1%, slightly surpassing earlier expectations of a decline between 2% to flat sales.
Adjusted EPS was $0.94, outperforming the anticipated $0.85, driven by stronger sales performance and resilient gross margins.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Aug 16

Daily Brief Consumer: Fast Fitness Japan Inc, Jiangxi Zhengbang Tech A, MarketEnterprise Co Ltd, Piala, Rizap Group and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Fast Fitness Japan Inc (7092 JP): Q1 FY03/26 flash update
Quiddity Leaderboard CSI 1000 Dec25: US$2.8bn One-Way; Strong Momentum for ADDs V DELs
MarketEnterprise Co Ltd (3135 JP): Full-year FY06/25 flash update
Piala (7044 JP): 1H FY12/25 flash update
Rizap Group (2928 JP): Q1 FY03/26 flash update

Fast Fitness Japan Inc (7092 JP): Q1 FY03/26 flash update

Revenue reached JPY4.9bn (+15.9% YoY), with JPY2.9bn from directly operated clubs and JPY1.8bn from franchise revenue.
Operating profit increased 40.8% YoY to JPY877mn, driven by higher revenue and offsetting increased SG&A expenses.
Gross profit was JPY2.2bn (+18.9% YoY) with a GPM of 44.8%, and SG&A expenses totaled JPY1.3bn (+7.7% YoY).

Quiddity Leaderboard CSI 1000 Dec25: US$2.8bn One-Way; Strong Momentum for ADDs V DELs

CSI 1000 represents the next 1000 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges after CSI 800.
In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2025.
Currently, we see 100 ADDs/DELs for the CSI 1000 index.

MarketEnterprise Co Ltd (3135 JP): Full-year FY06/25 flash update

Revenue reached JPY24.8bn (+30.3% YoY), with significant growth in Second-hand Online and Mobile & Telecommunications segments.
Operating profit increased to JPY626mn (+109.4% YoY), driven by a 0.9pp rise in the operating profit margin.
The company forecasts JPY30.0bn revenue (+21.1% YoY) and JPY1.1bn operating profit (+75.8% YoY) for FY06/25.

Piala (7044 JP): 1H FY12/25 flash update

Revenue reached JPY8.3bn, a 40.6% YoY increase, with 50% progress against the revised FY12/25 forecast.
Operating profit was JPY39mn, surpassing the initial forecast, with recurring profit and net income revised upward.
FY12/25 revenue forecast increased to JPY16.7bn; recurring profit and net income forecasts revised upward by 30.1%.

Rizap Group (2928 JP): Q1 FY03/26 flash update

Revenue declined by JPY543mn (-1.3% YoY), with both Healthcare & Beauty and Lifestyle segments posting decreases in revenue.
Rizap-related businesses’ revenue was JPY11.0bn (-7.4% YoY), with improved profitability in the chocoZAP business.
SD Entertainment recorded revenue of JPY1.1bn (+22.2% YoY) but faced a wider operating loss due to higher SG&A expenses.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Aug 15

Daily Brief Consumer: Jiangsu Lihua Animal Husbandry, Sun Corp, DigiPlus Interactive , Webtoon Entertainment, Hikari Tsushin, Qb Net Holdings, Goldiam International , Geely Auto, Synchro Food, Tear Corp and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Quiddity Leaderboard ChiNext & ChiNext 50 Dec25: ~US$900mn Combined Flows One-Way; New Pair Trades
StubWorld: Stay Long Sun Corp (6736 JP)
Digi Plus Interactive (PLUS PM): Strong Q2 FY25, But Regulatory Cloud A Massive Overhang
Webtoon Entertainment: Secures a Big Contract With Disney
Hikari Tsushin (9435 JP): Q1 FY03/26 flash update
Qb Net Holdings (6571 JP): Full-year FY06/25 flash update
Goldiam International: Riding on Lab-Grown Exports Despite Tariff Uncertainty
Geely (175 HK): 2Q25, Revenue Up by 28% YoY
Synchro Food (3963 JP): Q1 FY03/26 flash update
Tear Corp (2485 JP): Q3 FY09/25 flash update

Quiddity Leaderboard ChiNext & ChiNext 50 Dec25: ~US$900mn Combined Flows One-Way; New Pair Trades

The ChiNext index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
We see 5 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the next index rebal event.

StubWorld: Stay Long Sun Corp (6736 JP)

Sun Corp (6736 JP) is a clear value play. But not as cheap to 44.3%-held Cellebrite DI (CLBT US) as it was recently. Opt for a net long trade here.
Preceding my comments on Sun Corp – and JG Summit Holdings (JGS PM) / Universal Robina (URC PM) – are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Digi Plus Interactive (PLUS PM): Strong Q2 FY25, But Regulatory Cloud A Massive Overhang

DigiPlus Interactive (PLUS PM) reported robust Q2 FY25 results with revenue/net profits up 30.6%/30.1% YoY, driven by an increase in MAUs to 8.5 million from 7.5 million in Q1FY25.
Net margins remained flat YoY at 17%, as a decline in franchisee fees and taxes was offset by an increase in A&P spend as marketshare declined to 39% (vs 45%).
The stock trades at 6.9x FY25e, with multiple expansion catalysts. On the flipside, the regulatory concerns (on restrictions on online gaming) still cloud the sector.

Webtoon Entertainment: Secures a Big Contract With Disney

Webtoon Entertainment (WBTN US) has secured a big contract with The Walt Disney Co (DIS US) including Avengers and Spider Man to become available in webtoon format.
We believe Webtoon Entertainment could grab about 20% of the global market for webtoons in 2030 which would be about $4 billion in revenues.
Assuming a net margin of 10% and a P/E multiple of 20x, it suggests market cap of $8 billion for Webtoon Entertainment by 2030 (264% upside from current levels).

Hikari Tsushin (9435 JP): Q1 FY03/26 flash update

The company reported Q1 FY03/26 revenue of JPY167.2bn (+14.4% YoY) and recurring income of JPY43.5bn (+12% YoY).
New segmentation in Q1 FY03/25 includes seven reportable segments; revenue and profit figures adjusted retroactively.
Dividend for Q1 FY03/26 set at JPY181 per share, with total payout of JPY7.9bn, effective September 12, 2025.

Qb Net Holdings (6571 JP): Full-year FY06/25 flash update

Revenue rose JPY786mn YoY, driven by growth in Domestic and Overseas Operations, with a +3.2% full-year increase.
Operating profit declined JPY430mn YoY due to unplanned costs in Domestic Operations and increased talent development investment.
The company opened 43 new salons, increasing the total salon count by 33 YoY to 724.

Goldiam International: Riding on Lab-Grown Exports Despite Tariff Uncertainty

By Sudarshan Bhandari

Goldiam International reported its highest-ever Q1 results, with sales increasing by 39% year-on-year (YoY) and 17% quarter-on-quarter (QoQ).
The most standout update from the company is that it has able to pass on additional tariffs to US consumers despite a muted demand environment
Company is now raising growth capital of close to INR 250 crores via QIP and also expanding its backward integration, which will improve its performance further

Geely (175 HK): 2Q25, Revenue Up by 28% YoY

By Ming Lu

In 2Q25, Geely’s revenue increased by 28% YoY in 2Q25 and its vehicle deliveries increased more rapidly by 47%.
We believe Geely is the only competitor to the market leader BYD.
We set the target price at HK$23 for the next twelve months, which is 21% above the current price.

Synchro Food (3963 JP): Q1 FY03/26 flash update

Q1 FY03/26 revenue was JPY944mn, a 6.6% YoY decrease, with operating profit down 38.8% YoY to JPY184mn.
Media Platform business revenue increased 0.7% YoY, but segment profit declined 24.2% YoY, with user growth at 7.6%.
M&A Intermediary business revenue fell 60.0% YoY, with segment profit declining from JPY57mn to a JPY2mn loss.

Tear Corp (2485 JP): Q3 FY09/25 flash update

Sales increased 20.5% YoY to JPY16.8bn, driven by consolidation of Hakkoden and Tokai Tenrei and growth in funeral services.
Operating profit rose 46.5% YoY to JPY1.8bn, with recurring profit up 70.1% YoY and net income up 69.3% YoY.
The number of funerals rose 12.6% YoY to 15,321, with average funeral price increasing 4.4% YoY.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Aug 14

Daily Brief Consumer: Sun Corp, I-TAIL , BYD, Jyp Entertainment, Graham Holdings Co Class B, General Motors, Ferrari N.V., Ginebra San Miguel , Tegna Inc, Wynn Macau Ltd and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Sun Corp (6736) – CLBT Has Round-Tripped, But Now Better ParentCo and a Buyback so Set-Up Is Better
Quiddity Leaderboard SET50 Dec25: Capping for Delta in September; Index Changes Likely in December
BYD (1211 HK)’s Current Relief Rally May Lead to Another Pullback
JYP Entertainment: Explosive Earnings Growth in 2Q 2025
Graham Holdings’ Multi-Industry Playbook Is the Market’s Best Kept Secret!
General Motors (GM) Powers Up EV Strategy Through Hyundai Alliance & China Battery Sourcing
Ferrari N.V.: Initiation Of Coverage- Balancing Tradition & Innovation But Can It Dominate the Luxury Performance Market?
Ginebra San Miguel (GSMI PM) Q2 2025: A Solid Result, Market Leader At <10x PE, With A >35% ROCE
Tegna Buyout By Nexstar Could Spark The Biggest TV Shake-Up In Years
Lucror Analytics – Morning Views Asia

Sun Corp (6736) – CLBT Has Round-Tripped, But Now Better ParentCo and a Buyback so Set-Up Is Better

12 months on from the Tender Offer which changed the shape of the shareholder register, Sun Corp (6736 JP) is up small and its main asset Cellebrite is -10%.
The value of the rest of Sun Corp has probably increased to cover that 10% through new business earnings, but the main value is still Cellebrite. An exit still awaited.
Now Cellebrite is lower, and SunCorp is lower (but recently rising) and SunCorp has announced a buyback which accounts for a big chunk of Real World Float. Hmmm…

Quiddity Leaderboard SET50 Dec25: Capping for Delta in September; Index Changes Likely in December

The SET50 index tracks the performance of the top 50 largest and most liquid names listed on the Stock Exchange of Thailand (SET).
In this insight, we have presented our latest capping flow expectations for the September 2025 index rebal event.
Separately, we expect at least one index change during the next index review in December 2025.

BYD (1211 HK)’s Current Relief Rally May Lead to Another Pullback

By Nico Rosti

After an explosive rally in the first part of the year BYD (1211 HK) started to sputter in mid-May and has been downtrending since.
BYD was starting to be oversold at the end of last week, as shown in our latest Global Markets Tactical Outlook WEEKLY insight, but this week started a relief rally.
However, the current trend pattern is NOT BULLISH according to our model, the stock could fall again after a 1-2 weeks bounce. Profit target: 116-123 price zone.

JYP Entertainment: Explosive Earnings Growth in 2Q 2025

JYP Entertainment reported an explosive growth in sales and profits in 2Q 2025. It achieved sales of 215.8 billion won (up 125.5% YoY and 6.4% higher than consensus).
JYP also had an operating profit of 52.9 billion won (up 466.5% YoY and 23.3% higher than consensus in 2Q 2025.
JYP’s much better than expected results in 2Q 2025 confirms its ability to monetize the growing popularity of K-Pop globally.

Graham Holdings’ Multi-Industry Playbook Is the Market’s Best Kept Secret!

Graham Holdings Company has quietly delivered a series of encouraging results highlighting an estimated parts sum‐of‐the‐parts valuation exceeding $1,500 per share versus its market price near $950.
Fueled by double‐digit growth at Kaplan’s test prep and online university businesses, 36% year‐over‐year revenue gains in its fast‐growing healthcare services segment, and the potential spin‐off of its TV station group, Graham is drawing fresh attention for its diverse asset base and disciplined capital management.
With an overfunded pension plan, a conservative balance sheet holding more than $1.1 billion in cash and marketable securities against $800 million of debt, and family control via supervoting shares that aligns management with long‐term value creation, the Barron’s report cites narrowing losses at early‐stage businesses like Framebridge and increased focus on high-growth healthcare units as catalysts that could unlock shareholder value.

General Motors (GM) Powers Up EV Strategy Through Hyundai Alliance & China Battery Sourcing

General Motors has been quietly transforming its electric-vehicle strategy over the past few months, and the latest moves suggest the century-old automaker is more serious about EVs than ever.
In early August, GM shocked the industry by announcing a temporary import of lithium-iron-phosphate (LFP) batteries from China’s CATL, despite steep Trump-era tariffs, to power its next-generation Chevy Bolt.
Simultaneously, GM doubled down on joint ventures: teaming with Hyundai to codevelop five new hybrid and electric models slated for launch by 2028, and expanding its Ultium Cells partnerships with LG to bring domestic LFP and advanced lithium-manganese-rich chemistries on-line by 2027.

Ferrari N.V.: Initiation Of Coverage- Balancing Tradition & Innovation But Can It Dominate the Luxury Performance Market?

Ferrari presented its Q2 2025 financial results, reflecting both its operational strengths and the challenges it faces in a complex global environment.
During this period, Ferrari exhibited growth across key financial metrics, demonstrating a robust and disciplined execution of its business strategy despite uncertain macroeconomic and geopolitical conditions.
One of the standout achievements in this quarter was the increase in total revenues, which reached approximately EUR 1.8 billion, marking a 4.4% growth year-over-year.

Ginebra San Miguel (GSMI PM) Q2 2025: A Solid Result, Market Leader At <10x PE, With A >35% ROCE

Ginebra San Miguel (GSMI PM) reported steady growth in Q2 2025, with revenues and profits increasing by 7.3% and 20.7% YoY. Volume/Pricing grew 1%/6.3% YoY as company offset excise-duty increases.
EBITDA margins were maintained at 16.8%, while the company saw its net cash and investments stable at 16.1 billion pesos (56 pesos/share or 19% of market capitalization).
Trading at 9.9x PE and demonstrating pricing power/profit growth of 10-15% CAGR (with a dividend yield of 5.4%), this is a name to explore.

Tegna Buyout By Nexstar Could Spark The Biggest TV Shake-Up In Years

Tegna Inc. has once again found itself in the M&A spotlight, with reports indicating that Nexstar Media Group is in advanced talks to acquire the broadcaster in what could become a pivotal test for the Federal Communications Commission’s evolving deregulatory stance.
Nexstar, already the largest local TV station owner in the U.S., commands over 200 stations in 116 markets and owns national networks like the CW and NewsNation.
Tegna operates 64 stations across 51 markets, reaching more than 100 million people.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

The UST curve twisted steeper yesterday after the July CPI report came in mostly within expectations, which could provide room for a Fed rate cut in September.
The yield on the 2Y UST fell 4 bps to 3.73%, while the yield on the 10Y UST was stable at 4.29%.
Equities rallied to new record highs, with the S&P 500 and Nasdaq up 1.1% and 1.4%, to 6,446 and 21,682, respectively. In the US, the July CPI inched down to 0.2% m-o-m (0.2% e / 0.3% p), and was stable at 2.7% y-o-y (2.8% e / 2.7% p). T

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Aug 13

Daily Brief Consumer: 52TOYS Development, Kalyan Jewellers, Tencent Music, Silver Consumer Electricals, Just Eat Takeaway.com NV, The Keepers Holdings, Nick Scali Ltd, Wynn Macau Ltd, Ambev , Riken Vitamin and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

52Toys Development Pre-IPO: Steady Expansion But in a Highly Fragmented Market
Kalyan Jewellers: Deleveraging “Pause,” Capital Absorption Rising, Contrasting Capital Allocation
Tencent Music (TME): 2Q25, Concert Revenue Booming, Margin Hitting Historical High
Silver Consumer Electricals Limited Pre-IPO Tearsheet
Prosus–JET Arbitrage: EC Clearance Granted, Minimal Spread Remains
Shortlist of High Conviction Philippines Equity Ideas – August 2025
Strong Momentum Underpins Nick Scali’s FY26
Lucror Analytics – Morning Views Asia
Ambev SA: Revenue Management & Pricing Strategy for Brand Equity Realization In An Increasingly Competitive Beverage Market!
Riken Vitamin (4526 JP): Q1 FY03/26 flash update

52Toys Development Pre-IPO: Steady Expansion But in a Highly Fragmented Market

By Hong Jie Seow

52TOYS Development (TOY HK) is looking to raise up to US$200m in its upcoming HK IPO.
52Toys Development is one of the leading IP toy companies in China, with a portfolio of over 100 proprietary and licensed intellectual properties (IPs) as of Dec 2024.
In this note, we look at the company’s past performance.

Kalyan Jewellers: Deleveraging “Pause,” Capital Absorption Rising, Contrasting Capital Allocation

By Nimish Maheshwari

Management has paused its previously articulated plan to reduce debt by INR 300–400 crore.
The pause defers balance‑sheet de‑risking and redirects internal cash toward a lean‑credit procurement pilot and a new regional‑brand roll‑out (inventory‑heavy upfront), raising working‑capital intensity just as gross‑margin mix is shifting.
Near‑term FCF could compress despite strong topline; margin delivery needs to outpace capital absorption to sustain the rerating. Market reaction (‑9% on the day) shows low tolerance for capital‑allocation ambiguity.

Tencent Music (TME): 2Q25, Concert Revenue Booming, Margin Hitting Historical High

By Ming Lu

In 2Q25, non-subscriber music revenue surged by 47% YoY and total revenue grew by 18% YoY.
The operating margin hit the historical high since TME’s IPO.
We believe the stock has an upside of 9% and a price target of US$27.60 for the year end 2025.

Silver Consumer Electricals Limited Pre-IPO Tearsheet

By Hong Jie Seow

Silver Consumer Electricals (2301263D IN) is looking to raise US$160m in its upcoming India IPO. The deal will be run by Motilal Oswal Investment Advisors, ICICI, JM Financial, Choice Capital Advisors.
Silver Consumer Electricals Limited (SCEL) is one of India’s leading manufacturers of electrical consumer durables and agricultural equipment, operating through own-branded sales (“Silver” and “Bediya”) and OEM supply
The company operates India’s largest single-location, vertically integrated ECD and agri-equipment plant in Rajkot, Gujarat.

Prosus–JET Arbitrage: EC Clearance Granted, Minimal Spread Remains

By Jesus Rodriguez Aguilar

The EC’s conditional clearance removes the final regulatory risk for Prosus’s €20.30/share JET acquisition, leaving only procedural steps. Current 0.69% spread reflects a near-99% implied probability of deal completion.
Structural remedies (Delivery Hero stake cut, governance exit, voting restrictions) ensure JET and Delivery Hero remain independent competitors. An independent trustee will oversee compliance under the European Commission’s binding commitments.
Early entrants capture ~9.6% annualized return; late entrants ~4.0%. Post-clearance, the market shows minimal mispricing, making the trade appealing only for short-term, low-volatility capital deployment strategies.

Shortlist of High Conviction Philippines Equity Ideas – August 2025

We are gradually building a high-conviction coverage of ideas for mid and small-cap companies in the Philippines.
We established metrics focusing on high ROCE, sustainable growth of 10-15% YoY, robust balance sheets, and prudent capital allocation, essential elements for identifying potential multi-bagger opportunities.
Read our initiation Asian Terminals Inc (ATI PM): Steady And Cheap Container Port Terminal Operator, and our updates on The Keepers Holdings (KEEPR PM) / Shakey’s Pizza (PIZZA PM)

Strong Momentum Underpins Nick Scali’s FY26

By FNArena

A strong second-half performance in A&NZ and improving gross margins in the UK have propelled Nick Scali shares to new heights.
-Nick Scali’s FY25 results exceed expectations -A strong 2H for A&NZ, UK gross margin gains -Successful measures to improve cost base -Ord Minnett expects UK profits in FY28

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

UST yield movements were muted yesterday, amid an absence of macro news and ahead of the CPI data release today.
The yields on the 2Y and 10Y UST were unchanged at 3.77% and 4.29%, respectively.
Equities retreated, with the S&P 500 and Nasdaq both declining 0.3% to 6,373 and 21,385, respectively.

Ambev SA: Revenue Management & Pricing Strategy for Brand Equity Realization In An Increasingly Competitive Beverage Market!

The recent performance of Ambev, detailed in their quarterly report, presents a mixed outlook for the company’s future.
Key financial metrics demonstrate resilience in the face of various challenges, but also reveal areas of concern that investors should closely monitor.
Positively, Ambev managed to deliver a high single-digit organic EBITDA increase, achieving a 110 basis point margin expansion despite difficult market conditions primarily attributed to adverse weather.

Riken Vitamin (4526 JP): Q1 FY03/26 flash update

Q1 FY03/26 revenue was JPY23.3bn, a 1.6% YoY decline, with Domestic Chemicals increasing and Overseas business declining.
Operating profit decreased by 6.2% YoY to JPY2.4bn, impacted by FX losses and increased advertising and logistics costs.
Consumer foods revenue increased YoY, while commercial foods decreased; processed food ingredients and chemical products saw YoY growth.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Aug 12

Daily Brief Consumer: Ashimori Industry, Ola Electric, Kolon Mobility Group, Guangzhou Automobile Group, Bluestone Jewellery and Lifestyle Ltd Ltd (BJL), Yomeishu Seizo, Tata Motors, Kalyan Jewellers, CyberAgent Inc, TSE Tokyo Price Index TOPIX and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

[Japan M&A] Toyoda Gosei Buys Out Affiliate Ashimori Industry at 1.000x Mar25 Book
NIFTY MIDCAP150 Index Rebalance Preview: 11 Potential Changes in September
Kolon Mobility (450140 KS)’s Delisting Offer
HK Connect SOUTHBOUND Flows (To 8 Aug 2025); Big Swing Out of ETFs into TECH
Bluestone Jewellery IPO – Moving from Online to Offline. Thoughts on Valuation
Yomeishu Seizo (2540 JP): Evaluating a Potential Privatisation
Closure of Short Call on Tata Motors
Kalyan Jewellers (KALYANKJ IN) | The Capital Sinkhole
CyberAgent: Newly Released Games Drive Growth with an Upward Revision to Guidance
To Companies that Adopt DOE: It’s Good to Consider ROE, but Are They Falling into Short-Termism?

[Japan M&A] Toyoda Gosei Buys Out Affiliate Ashimori Industry at 1.000x Mar25 Book

Toyota Motor (7203 JP) subsidiary Toyoda Gosei (7282 JP) is buying out its own equity affiliate Ashimori Industry (3526 JP) at a near-all-time high price of ¥4,140/share.
It’s not a great price, but it is just over 1x book after writedowns this past quarter. It basically requires cross-holders and half a retail to tender.
But this autoparts business is a strong grower, and has no EV risk. And its non-autoparts business is more interesting. The “fair” multiples are low. But it’ll get done.

NIFTY MIDCAP150 Index Rebalance Preview: 11 Potential Changes in September

With the review period now complete, there could be 11 changes for the NIFTY Midcap 150 Index at the September rebalance.
Estimated one-way turnover is 7.7% resulting in a round-trip trade of INR 17.6bn (US$201m). With over US$43bn tracking the index actively, the impact on the stocks will be much larger.
The outright forecast adds have outperformed the forecast deletes over the last 4 months and there has been a jump in the last week.

Kolon Mobility (450140 KS)’s Delisting Offer

Kolon Corp (002020 KS)(KC) is seeking to delist 75.23%-held Kolon Mobility Group (450140 KS) (KM), an auto importer.
Via a dual approach, KC is offering ₩4,000 per KM common share and ₩5,950 per KM preferred share. Any untendered shares will be swapped into KC shares.
The tender offer period is from 8th August to 8th September, with payment on the 10th September. There is no minimum acceptance condition.

HK Connect SOUTHBOUND Flows (To 8 Aug 2025); Big Swing Out of ETFs into TECH

Gross SOUTHBOUND volumes just over US$16+bn a day this past 5-day week. A comedown from the previous week. Net buying OK at just over +US$550mm/day. One-third of the previous week.
Last week’s reco was Great Wall Motor (2333 HK) up 9.8% on the week, and H/A spread contracted 6.2%.
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.

Bluestone Jewellery IPO – Moving from Online to Offline. Thoughts on Valuation

By Shifara Samsudeen, FCMA, CGMA

Bluestone Jewellery and Lifestyle (BJL) is planning to raise about US$176m in its upcoming India IPO.
BJL offers contemporary lifestyle diamond, gold, platinum, and studded jewellery under its flagship brand. It is a digital-first direct-to-consumer (DTC) brand.
We have looked at the past performance in our previous note. In this note, we talk about the IPO pricing.

Yomeishu Seizo (2540 JP): Evaluating a Potential Privatisation

By Arun George

On 7 August, Bloomberg reported that Yomeishu Seizo (2540 JP) is considering going private and has received acquisition proposals from several investment funds.
Privatisation is a neat solution for the Board to get rid of a potentially problematic activist shareholder, Yukihiro Nomura, the son-in-law of Yoshiaki Murakami.
PE interest is underpinned by Yomeishu’s net cash and significant real estate assets. However, the shares are up 63% YTD, which leaves little room for additional upside. Take profits.

Closure of Short Call on Tata Motors

By Sreemant Dudhoria,CFA

Post Q4FY25 results,we had presented our case for shorting Tata Motors in May 2025, anticipating a challenging quarter ahead.We now recommend closing the short position,with reasons explained in this insight
The company reported a very challenging Q1FY26, with JLR EBIT crashing to 4.0% (vs 8.9% YoY). The India passenger car business also faced similar pressure.
The only segment to deliver stable performance was the commercial vehicle division.

Kalyan Jewellers (KALYANKJ IN) | The Capital Sinkhole

By Pranav Bhavsar

Kalyan Jewellers (KALYANKJ IN) Management paused INR 350-400 crore debt reduction after 90 days, now planning INR 2,700 crore capital consumption without clear justification.
Candere losses increased 5X while management admits e-commerce isn’t their strength, yet continues expanding with new regional brand initiatives.
Stock trades at 44x P/E NTM above 3-year average despite questionable capital allocation and non-quantifiable efficiency claims from management.

CyberAgent: Newly Released Games Drive Growth with an Upward Revision to Guidance

CyberAgent Inc (4751 JP) reported 3QFY09/2025 results on Friday aftermarket. Both revenue and OP beat consensus estimates with an upward revision to full-year guidance.
Gaming segment has begun to see recovery driven by the strong performance of newly released game titles which have become a hit. There are several new titles up for release.
Though CA’s share price has moved up with recovery in games and improved profitability of AbemaTV, we think there is further upside.

To Companies that Adopt DOE: It’s Good to Consider ROE, but Are They Falling into Short-Termism?